How to forecast NOI

[Account Closed]

Hi guys, 

Determining NOI is not problem, but how would you suggest forecasting future NOI for the the next 5-10 years when running a DCF or trying to calculate net present value?

Thank you. 

[Arpan Patel]

I wouldn't and we don't advise people to do so. If you are making money today then just keep managing the asset so it'll make money later. We don't model appreciation of rent growth or value increase due to factors outside of our control. DCF to track back to NPV I would say don't make or break a deal, they are just nice to know in the long run. If your units aren't cashflowing today then all else doesn't make sense.